“This time it's different”... people worry about this every time there is a market downturn... they should not. Don't get me wrong, I am not trying to downplay the significance of the current state of the world from a health or financial standpoint.
It is often too easy for us advisors to sit in our offices and tell clients that everything will be OK, that sometimes bad things happen in the world. How we as advisors deal with these bad things should not happen on the day that they occur or the days after. The key to dealing with such events should be, and in our case, has been, preparing for these types of events when we build your portfolios in the first place. I am sometimes accused of being “too conservative”, when markets are flying high and clients are not achieving the maximum returns available and I am 100% okay with this. At the end of the day, what my 35 years has taught me is that people deal with our team for times like this. We have already taken profits and re-balanced your portfolios to your ideal asset mix based on your personal risk tolerances. We own companies that will make it through these tough times and continue to pay dividends. We continue to rebalance through the bad times to take advantage of opportunities.
So I do not take it lightly when I tell you ... sit back - everything will be OK ... it will be... because we did our homework in advance.
Have a read of the attached article if you are looking for something a little more technical... it's well done and not just 'fluff'.